Mumbai, April 4: The Indian stock market concluded the fiscal year 2025-26 with disappointing performance. Excluding the pandemic-affected year, this has been the worst year for major indices like Sensex and Nifty in the last decade. Heavy selling on the last trading day further deepened the bearish sentiment.
On the final trading day of the fiscal year, the Sensex fell by 1,635 points to close at 71,947, while the Nifty dropped 488 points to end at 22,331. This decline resulted in a significant reduction in the total market capitalization of BSE-listed companies, which decreased by approximately ₹10 lakh crore to ₹412.43 lakh crore from ₹422 lakh crore in the previous session.
Experts suggest that despite these setbacks, the fundamental condition of the market remains strong, indicating potential recovery in the near future.
Throughout fiscal year 2026, the Sensex declined by about 5.36% and the Nifty by 3.6%. Key reasons for this downturn include escalating tensions in West Asia, high crude oil prices, and increasing global uncertainty. Additionally, record sell-offs by foreign investors have put further pressure on the market.
March 2026 was particularly challenging, with both the Sensex and Nifty recording a decline of approximately 10.5%. This is considered the largest drop since March 2020. Crude oil prices remained above $115 per barrel, and foreign investors sold off a record $12.3 billion, adding to market pressures.
However, historical trends indicate that consecutive years of decline in the Indian market are rare. This suggests that a recovery may be on the horizon.
The impact of global events has been evident in the Indian market. The increasing conflict in West Asia, Iran’s closure of the Strait of Hormuz, and surging oil prices have heightened investor concerns. Furthermore, stricter regulations on domestic lending by the RBI have led to declines in banking and financial stocks.
Sector-wise, the Nifty Realty, IT, and FMCG indices were the most affected. In fiscal year 2026, the Realty index fell by 21%, IT by 20%, and FMCG by 13%.
Despite the downturn, some stocks performed well. Shares of Shriram Finance, Bharat Electronics (BEL), State Bank of India (SBI), Titan, and Eicher Motors saw gains ranging from 27% to 38%, boosting investor confidence.
Experts note that while some stocks have faced declines, this is part of the normal market cycle. Such fluctuations can create good opportunities for investors, especially in companies with strong fundamentals.
Despite global challenges, India’s market has remained relatively stable. While Asian markets experienced rapid growth, the long-term strength of the Indian market and investor confidence set it apart.
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